Direct Marketing

Direct marketing is a popular business model used in a large number of industries. The definition of direct marketing is: The sale of a consumer product or service, usually done in person and not in a retail location. Many companies choose this sales method because much of the sales and marketing expenses and work is done by associates or distributors. The associates or distributors typically purchase the product for a discounted price and sell it at full retail. That is how they are compensated for their time and money investment.

The most common direct marketing model is in-home demonstrations to one or many people (parties). Associates grow their business through conventional advertising and marketing, word of mouth, or more recently, social media. With the advent of the internet, many direct marketing products are marketed and sold through websites or by phone after an initial contact through the internet.

The products sold through direct marketing are wide ranging, everything from makeup and supplements, to high-end educational, travel or leisure programs. Typically, the small ticket items are consumables, and once an associate has a happy customer, that customer will continue to order products. It is very important for the associate to provide high-quality customer service to keep the customer happy because there can be a lot of competition.

The higher ticket items are usually one-time sales. Once the transaction is complete the customer no longer needs additional products from the associate. Even though the customer may never purchase from the associate again, it is still very important to provide high-quality customer service because the customers may refer the associate to a friend or family member, which could lead to additional sales.

Many people prefer to purchase products through direct-sales channels because they feel more comfortable doing business with people they have built a relationship with. Additionally, a direct marketing associate may provide personalized services such as delivery of the products or customized demonstrations and explanations.

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